Deductible break-even calculator
Compare two deductibles: what the higher one saves each year, what it costs when you claim, and how many claim-free years it takes to break even.
Runs entirely in your browser: nothing you enter is sent or stored by this site. Results are estimates for planning, not a quote or advice.
What it tells you
A higher deductible lowers your premium because you agree to pay more of each collision or comprehensive claim yourself. Whether that trade pays off depends on two numbers only you can supply: how much the higher deductible actually saves on your policy, and how often you expect to claim. The calculator turns them into a break-even point and an expected yearly cost for each option.
How to use it
- Ask your insurer or agent for your premium at two deductibles — for example $500 and $1,000 — with everything else unchanged. Most online quote tools let you switch the deductible and re-price.
- Enter both deductibles and both annual premiums. If you pay every six months, double the six-month figures.
- Set how many claims you expect per year. 0.10 means one claim every ten years; 0.33 means one every three. Your own claims history is the best guide.
- Optionally, enter the savings you could tap tomorrow. A deductible you cannot pay on the day of the claim is the wrong deductible, however good the math.
The math
- Premium saved per year = premium at the lower deductible − premium at the higher one.
- Extra cost per claim = higher deductible − lower deductible.
- Break-even = extra cost per claim ÷ premium saved per year. If the higher deductible saves $150 a year and costs $500 more per claim, you need about 3.3 claim-free years to come out ahead.
- Expected yearly cost of each option = premium + (expected claims per year × deductible).
Limits of the estimate
- Deductibles usually apply separately to collision and comprehensive, and some policies set different amounts for each. Run the calculator for each coverage if yours differ.
- It ignores the effect of a claim on future premiums. An at-fault claim may raise your rate whichever deductible you chose; see should you file a claim or pay out of pocket? and the Should I file a claim? calculator.
- Glass claims may have their own deductible or none at all in some states — see full glass coverage and zero-deductible windshield repair.
- When another driver causes the crash and their insurer pays, you normally owe no deductible at all (do you pay a deductible if the accident was not your fault?).
For the wider decision, read how to choose a deductible: $500 vs $1,000 and beyond.
Last reviewed October 4, 2026